Cardano is making the rounds again after several months of consistent decline. June was its most bearish month of the year, posting losses of almost 40%.
However, the asset is gearing up for a milestone not seen since September 2025. If it maintains its current price until the end of August, it will post its second month of consecutive increases.
Nonetheless, the likelihood of the asset remaining green until month-end is speculative at the time of writing. Amid several expectations, the altcoin has given reasons to believe it can maintain its upward trajectory for most of the next three weeks.
Cardano edges close to registering its second week of uptrend. Over the last five days, it gained more than 6%. It also ended the previous intraweek session with gains exceeding 14%. Cumulatively, its more than 20% increase spreads conviction that ADA is back.
Away from price movements, the biggest fuel to the recent uptrend is the Dijkstra era. It is a critical update which will introduce Ouroboros Leisos, a mechanism to separate transaction validation from block generation. There are also other features this developmental era will bring, but generally, the project is set for a massive upgrade when it’s done.
The event officially commenced on July 18 and was well-received by the community. The clearest indication of their acceptance was the over 16% price surge last month. However, amid the upgrade, many fear the hype will fade and speculate a massive pullback in the coming days.
The fears are further heightened by trading actions over the last five days. While the asset remains green on the 1-week scale, it is considerably lower than the previous session. Adding to the concerns is the long wick sticking out from the candle’s top.
Will Cardano Dip Next Week?
Two chart timeframes point to a huge likelihood of this happening. The first is the 1-week chart, which shows that ADA recently broke a key level. It has traded below $0.20 for more than eight weeks but flipped the mark a few days ago.
While the bulls express satisfaction over the milestone, they are struggling to flip another key level. A closer look at the image above shows that the altcoin recently faced rejections at bollinger’s SMA. As a result, it is seeing a notable pullback.
Since dropping below the middle band a few months ago, it has been in a downtrend. However, it saw slight increases in May, resulting in a retest of the SMA. The asset failed to flip the indicator and dipped lower the next week. Its recent decline suggests that the bulls are yet to overcome the psychological barrier. If the trend repeats, ADA will see notable retracement over the next two weeks.
Aside from the 1-week chart, the 1-day chart re-echoes the same signal. Cardano broke above bollinger’s upper band during last week and has since traded close to the mark. Per this metric, the altcoin is due for corrections. The likely timeline: within the next seven days.
Questions about how low it will go arise. It is worth noting that the cryptocurrency has notable demand concentration at $0.185. The bulls will likely defend this support. Nonetheless, it will mean a 7% drop from the current price.
